Referrals are the bread and butter of growth for many advice businesses, but relying on them alone is risky. Helpful when they happen, but nerve-wracking when they don’t.
In this month’s Inside the Packet, we feature a financial advice firm that made one smart change and transformed referrals from a hopeful growth strategy to a consistent lead source.
The Situation
This business already had a good thing going – a great service, a loyal client base and a steady trickle of referrals. But the keyword there? Trickle.
Some months were great, others were dry as an overcooked chip.
They considered incentivising their clients to refer more, but it felt… off. Too transactional. Not in line with how they liked to treat their clients, or how their clients saw them.
Even getting advisers to bring it up felt clunky. “Got any friends who need advice?” isn’t exactly a natural part of a client review meeting or conversation.
So, the challenge was clear:
How do we increase referrals in a way that feels respectful, and not weird?
The Inspiration
It came, as inspiration often does, from the world of food.
Specifically, from food-delivery service: HelloFresh.
Their offer? Recommend a friend, and you both score a free box of food. Win-win. No awkwardness. No hard sell. It just felt… easy.
What if referrals in Professional Services could feel like that?
The Strategy
We helped the business launch a simple, client-friendly referral program:
- Refer a friend, and you both get a $200 gift card (from a shortlist of well-known retailers).
- Not into gift cards? You could choose to donate the $200 to a charity instead.
The screenshots below are from a client whose referral program we’re currently cooking up and will be helping launch soon.
This wasn’t about “getting clients to do you a favour.” It was about giving them something they could share and making it easy.
Speaking of making it easy, we also helped them use their website to remove as much friction from the process as possible, making the actual referral process as simple as possible.
The strategy also included scripting for their financial advisers, so they could easily share the program in their client meetings.
The Result
- 📈 Referrals increased by 50% in the first six months, and this number continued to compound as client numbers grew
- 💡 Referrals were more consistent month-to-month (and therefore a more reliable source of business growth)
- 🗣️ Advisers felt more comfortable bringing referrals up with clients (because they weren’t asking for a referral, they were sharing a referral program their client could pass on)
- 🔁 By building the program into the new client and review processes, it didn’t rely on memory or motivation for it to happen
Referrals don’t have to feel icky. Sometimes, all it takes is the right structure, and a little inspiration from another industry.
Bon appetit 🤌